The Russian branch of tech giant Google is preparing to file for bankruptcy, unable to withstand the war. The company said they could no longer hold the Russian branch. If bankruptcy occurs, Google will be the first major tech company to go bankrupt because of the war. Let’s take a look at the details of the news together.
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A Google spokesperson said it will continue to offer free services such as Search, YouTube, Gmail, Maps and Google Play to help people in Russia access information following the news of bankruptcy.
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The company made the following statements in the letter sent to Russia stating that they intend to file for bankruptcy:
“Since March 22, 2022, it provides for its own insolvency and failure to meet its monetary obligations, the payment of severance pay, and (or) the remuneration of (or) the remuneration of personnel working or previously employed under an employment contract, and (or) the obligation to make mandatory payments within the stipulated period.
Russia fined Google 7.2 billion rubles (roughly $100 million) for illegal content in December. The fine in this amount accounts for 8 percent of Google Russia revenue. In addition, Russia allegedly confiscated 1 billion rubles (about $15 million) of Google’s revenue due to YouTube access.
Following the allegations, Russian media regulatory agency Roskomnadzor threatened to fine Google with a lesser amount of 8 million rubles (about $95,000) after YouTube removed the illegal videos. As a result, it is not known how much money Russia receives from Google.
Due to the Russian-Ukrainian war, almost all major companies such as Apple, Meta and Microsoft have suspended their activities in the country. Russia has banned Instagram and Facebook platforms in the country. Some app developers then created a country-specific platform.